The Foreign Service Journal, June 2014

46 JUNE 2014 | THE FOREIGN SERVICE JOURNAL AFSA NEWS FSPS Annuity Supplement: A Reminder The Foreign Service Pension System annuity supplement can be confusing. It is a bene- fit payable to certain employ- ees who retire before age 62, are in the “new” FSPS retire- ment system and are entitled to an immediate annuity. The purpose of the supplement is to provide a level of income before age 62 similar to that an annuitant would receive at age 62 as part of Social Security benefits. The annuity supplement is payable from the date of retirement until the month prior to the one in which the annuitant reaches age 62. It is calculated as if the annui- tant is 62 and fully eligible to receive SSA benefits on the day of actual retirement. The payment is subject to an annual earnings test similar to the one applied to Social Security benefits. An employee with at least one year of FSPS service and who retires (voluntarily or involuntarily) is eligible for an immediate annuity. Employ- ees who retire at their mini- mum retirement age (see table) with at least 10 years of service or employees who retire on disability or deferred retirement are not eligible for the annuity supplemental. To calculate a retiree’s As most members recall, AFSA unveiled new guide- lines for ambassadorial qualifications in February. Our goal was to craft a set of chief-of-mission guidelines that were broad, general and positive—yet specific enough to hit the main areas of expertise needed by both career and non-career nominees to be able to lead an embassy or mission effectively. A working group of 10 former ambassadors drafted the guidelines and AFSA’s Governing Board adopted them in January. As part of this project, AFSA filed FOIA requests for nominees’ “cer- tificates of demonstrated competence”—a document required under the Foreign Service Act of 1980. The State Department’s positive response to that request offered a window into this process. We concluded that more transparency would benefit everyone involved. Publica- tion of the certificate of demonstrated competence prior to a nominee’s hear- ing, together with an effort Agreement on Ambassador Certificates AFSA’s goal was to craft a set of chief- of-mission guidelines that were broad, general and positive, yet specific enough to hit the main areas of expertise. to write the certificate to address specific qualifica- tions, would open up the process to the public and address the issue of qualifi- cations for all nominees. AFSA proposed to the administration that going forward—as part of the Transparency in Government initiative and a forward- looking legacy—the State Department will publish more detailed certificates online in real time. These revised documents will draw on the AFSA guidelines to illustrate nominees’ experi- ence in the four key areas: leadership, character and proven interpersonal skills; understanding of high-level policy and operations; man- agement; and understanding of host country or relevant international experience. Certificates for sub- sequent ambassadorial nominees have, in fact, been posted online before each individual’s Senate Foreign Relations Committee hear- ing. You may find the certifi- cates on the department’s website, www.state.gov/m/ dghr/coc. n –Ásgeir Sigfússon, Director of New Media $20,000 divided by 40, times 20: $10,000. The FSPS annuity supple- ment is subject to an earn- ings test that begins after a retiree reaches the minimum annuity, the department estimates what his or her full Social Security benefits would be. Then it calculates the amount of service under the FSPS, and reduces the esti- mated full Social Security benefits accordingly. For example, if an estimated Social Security ben- efit at age 62 is $20,000 and the number of years under the FSPS is 20 years, the formula would be What Is Your Minimum Retirement Age? If you were born… Your MRA is… Before 1948 55 years 1948 55 years and 2 months 1949 55 years and 4 months 1950 55 years and 6 months 1951 55 years and 8 months 1952 55 years and 10 months 1953-1964 56 years 1965 56 years and 2 months 1966 56 years and 4 months 1967 56 years and 6 months 1968 56 years and 8 months 1969 56 years and 10 months 1970 or later 57 years